Omada: 3 Key Takeaways for Long-Term Investors

On its third-quarter 2026 earnings call, held on Nov. 5, 2026, Omada (NASDAQ:OMDA) raised its full-year guidance for revenue and adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization. Member retention reached a record average tenure of nearly two and a half years, which drives recurring revenue and higher customer lifetime value. Lower member care costs prove that clinical scale and software automation generate real operating leverage. Three things management said stand out for long-term investors.

1. Core Cardiometabolic Programs Drive Higher Retention and Lifetime Value

Omada builds digital health tools that help members manage chronic conditions like diabetes and high blood pressure between doctor visits. Patients stick with these multicondition programs far longer than basic weight-loss tracks, creating steady recurring revenue and higher lifetime value, or total expected customer profit.

The mix shift toward these programs contributed to our revenue growth. These are programs where members have tended to stay engaged with us longer because of the chronic nature of the disease, which supports higher lifetime value for Omada.
-- Wei-Li Shao, President

2. Technology and Automation Lower Care Delivery Costs to Expand Margins

The business uses artificial intelligence to streamline routine member outreach, allowing human care teams to support more patients without sacrificing quality. As members build lasting health habits, non-GAAP cost of revenue, which excludes stock compensation and measures care delivery expenses per member, fell to an all-time low of $81.

Gross margin expansion this quarter reflects a lower cost to serve our members, driven by lower care team delivery cost and the maturation of our longer tenured cohorts.
-- Steven L. Cook, Chief Financial Officer

3. Flexible Product Tracks Protect Demand Regardless of Employer GLP-1 Coverage

Rising healthcare costs are prompting some employers to reconsider paying for expensive GLP-1 weight-loss medications, which suppress appetite. Omada designed its prescribing options and FlexCare program to deliver clinical support whether employers cover the underlying drug or contract through pharmacy benefit managers (PBMs), which process drug claims for health plans.

We have carefully constructed our go-to-market or GLP-1 product strategy to actually straddle both sides of the coverage decision, meaning if employers are covering GLP-1s, we have a suite of prescribing and lifestyle support GLP-1 Care Track solutions that are covered in a number of PBMs and health plans.
-- Wei-Li Shao, President

Looking Ahead

Third-quarter revenue reached $91 million with positive net income, and financial results exceeded internal projections. Widespread distribution through major pharmacy benefit managers and direct benefit integrations with health plans create durable distribution advantages as leadership manages spending discipline.

Our Q3 performance and our visibility into the Fourth Quarter give us the confidence to raise our full year 2026 revenue and adjusted EBITDA outlook.
-- Steven L. Cook, Chief Financial Officer

Holding $243 million in cash with no debt gives the business financial strength to expand clinical technology and enter new benefit years.

As I step into the CEO role, my focus is simple. Execute with discipline, stay close to our partners and members, accelerate innovation, and keep pushing on our mission to bend the curve of chronic disease.
-- Wei-Li Shao, President

The Motley Fool has positions in and recommends Omada Health. The Motley Fool has a disclosure policy.